Babcock & Wilcox Enterprises (BW) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $290.8M, up 109% YoY; adjusted EBITDA was $17.7M, up 88%; bookings rose 112% to $228M and backlog increased 571% to $2.51B.

• Global pipeline exceeded $16B, including 6 GW of incremental power-generation opportunities and more than $10B in non-data-center generation.

• Rising electricity demand supported activity across parts and services, environmental technologies, and coal- and natural gas-fired generation solutions.

Financial highlights

• Q3 revenue was $290.8M vs. $139.2M YoY; $77.8M came from Base Electron. 9M revenue was $824.9M vs. $426.7M.

• Q3 operating income was $13.8M vs. $3.4M; net income was $93.9M vs. $35.1M, while continuing-operations income was $93.5M and included an $85.1M non-cash warrant fair-value gain.

• Adjusted EBITDA was $17.7M vs. $9.4M in Q3 and $55.5M vs. $27.3M in 9M; adjusted net income was $4.8M.

• Q3 basic EPS was $0.61 vs. $0.30; diluted EPS was $0.02 vs. $0.30.

Outlook and guidance

• Reaffirmed FY 2026 adjusted EBITDA target of $80M-$105M and set FY 2027 target at $125M-$140M; ~75% of the 2027 target is supported by backlog or recurring book-and-bill activity.

• The 2027 target is not performance guidance and cannot be reconciled to GAAP without unreasonable effort; management characterized the outlook as conservative, with larger project contributions mainly expected in 2028-29.

• Remaining performance obligations were $2.51B at September 30; expected revenue recognition was $258.6M in 2026, $705.9M in 2027 and $1.55B thereafter.

• The $2.4B Base Electron project covers four 300-MW gas-fired plants, targeted to begin commercial operation in 2030.

• Q4 cash flow was expected to improve with collection of elevated September receivables; parts and services revenue was expected to rise in Q4 and remain strong in Q1.